Soltec Power (SOL) Q2 2024 earnings summary

Executive summary

• Revenues grew 28% year-over-year to €236.5M in H1 2024, driven by higher tracker sales and a strategic shift to focus on solar trackers, with new management appointed to lead transformation and operational efficiency.

• Net loss widened to €126M, mainly due to asset impairments, construction business losses, and non-cash adjustments in non-core segments.

• Solar trackers accounted for nearly 80% of revenues, reinforcing the exit from construction and asset management activities.

• Regional business units now operate autonomously to enhance agility and financial sustainability.

• Transformation plan underway with over 45 actions targeting operational efficiency, profitability, and cash generation.

Financial highlights

• Consolidated revenues: €236.5M in H1 2024, up 28% year-over-year.

• Adjusted EBITDA was negative €6.3M, improving from negative €10.2M in H1 2023.

• Net loss of €126M, including €38M in deferred tax asset write-downs and €62.8M in energy segment losses.

• Gross margin on sales: 28% (H1 2024) vs 37% (H1 2023).

• Net financial debt: €227.5M as of June 30, 2024.

Outlook and guidance

• Strategic focus on tracker supply as core business, with project development and O&M as supporting activities.

• Discontinuation of construction and asset management activities to reduce debt and enhance value creation.

• Transformation plan targets cost optimization, margin improvement, and cash generation.

• Ongoing negotiations to refinance credit facility and secure new guarantees to support growth.

• Business plan to be presented in coming months.